Ola Consumer Reports EBITDA Profitability in FY24 Despite Revenue Decline

Ola Consumer, which is preparing for an initial public offering, reported a decline in its total revenue for the financial year ending March 2024. The company’s revenue from operations and other income stood at ₹2,368 crore, compared to ₹3,000 crore in FY23, marking a 21% decline year-on-year.

The standalone revenue of ANI Technologies, which operates Ola Cabs, was ₹1,906 crore in FY24, down from ₹2,135 crore in FY23. Despite the decline in revenue, Ola Consumer reported EBITDA profitability in its mobility and financial services segments. EBITDA, excluding discontinued operations, increased significantly to ₹271 crore from ₹87 crore in the previous year.

Expansion Across Mobility and Financial Services

Ola Consumer rebranded from Ola Cabs last year to reflect its expansion beyond ride-hailing. The company has introduced several initiatives to strengthen its business and improve operational efficiency.

The company launched a premium ride-hailing service and expanded its two- and three-wheeler ride-hailing operations to Tier-II and Tier-III cities. It is also increasing the adoption of electric vehicles, aiming to lower operational costs and attract more drivers to its platform. The use of electric vehicles is expected to help improve affordability for consumers while ensuring better unit economics for the company.

Ola Consumer also introduced a rewards programme in August 2024, allowing users to earn incentives on transactions across its services.

E-commerce and Logistics Expansion

The company has expanded its presence in food delivery, groceries, and related commerce through the Open Network for Digital Commerce. Currently, it fulfils over 80 percent of last-mile logistics requests on the network. In addition to last-mile delivery services, the company plans to offer automated and AI-enabled warehousing solutions for businesses looking to optimise inventory management.

Ola Consumer is also working on onboarding more sellers to build its catalogue depth on the Open Network for Digital Commerce. The company is developing an artificial intelligence-based shopping co-pilot that aims to provide a seamless shopping experience across various platforms.

Financial Services Growth

In financial services, Ola Consumer launched a unified payments interface on its platform, enabling users to make digital payments for rides, food, and groceries. The company has also expanded into personal loans through Ola Financial Services, leveraging its access to premium customers with strong credit profiles.

Conclusion

With its focus on mobility, financial services, e-commerce, and logistics, Ola Consumer is working towards diversifying its revenue streams ahead of its initial public offering. The company continues to expand its services and enhance operational efficiencies to strengthen its position in the market.

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